[This is part of the series: The Complete Guide To Economics 101.]
What is the law of supply and demand?
The Law of Supply And Demand states that prices will increase or decrease so that supply and demand are equal.
Keep in mind this is a dynamic process.
Prices to not balance supply and demand, and that is the end of the story.
What is a micro-shortage? Ever seen a store, or city, run out of something?
What is a micro-surplus? Ever seen a store, or city, have too much of something and have to cut prices to sell it?